Reduce Price to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: ATTRACT CUSTOMERS
CHOICE 2 SEGMENTS: PRODUCT SYSTEM COMPONENT SEGMENT / SERVICE PAYMENTS
CHOICE 3 COMPONENT: PROVIDE A FREE, OR HEAVILY DISCOUNTED, PRODUCT FROM THE COMPANY, OTHER THAN THE PRODUCT ON SALE
No. | SIC | Year | Notes |
1 | 3577 | 1988 | Kodak offers a 9 month free service contract. |
2 | 4812 | 1998 | Omnipoint Corp. recently launched a "no monthly fee" prepaid cellular phone service. |
3 | 5942 | 2002 | Early this year, Amazon waived delivery charges on orders $99 and above. Later, the company dropped the minimum order size to $49, then to $25–about the price of two hardback books or CDs. |
4 | 6021 | 1997 | Commerce Bancshares Inc. offers free checking to try to lure customers from NationsBank, a fee-assessor that moved into the area. |
5 | 7372 | 2005 | Microsoft Corp. said it will begin offering free software for combating "spyware" and viruses, responding to concerns about security flaws in its products but sending jitters through other makers of antivirus software. Last year, Microsoft acquired Giant Company Software Inc., a small NY maker of the antispyware product. These moves rattle traditional sellers of security software, like Symantec and McAfee. |
6 | 7991 | 2009 | Health clubs are another area where people have added services. On average, membership costs have fallen- to about $402 a year in 2007 from $422 in 2003. But overall health-club revenue was up, largely because members were buying more services, including personal training, massages and nutrition counseling. |
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